American Express is in the market with two deals issued from its credit account master trust.
The deals are each initially sized at $576 million.
Moody's Investors Service has assigned a 'Aaa'(sf) rating to the senior Class A floating rate certificates and a 'A2'(sf) rating to the mezzanine Class B floating rate certificates of Series 2011-1 .
Moody's has also assigned a 'Baa2'(sf) rating to the floating rate secured notes (Class 1) issued by the related American Express Credit Account Secured Note Trust 2011-1.
On the Credit Account Secured Note Trust 2011-2, Moody's has assigned a 'Aaa'(sf) rating to the senior Class A floating rate certificates and a 'A2'(sf) rating to the mezzanine Class B floating rate certificates. Moody's has also assigned a 'Baa2'(sf) rating to the floating rate secured notes issued by the related American Express.
The credit card ABS sector saw two new transactions priced in September. According to Wells Fargo credit card surveillance report, in September, year-to-date new issue volume stood at $6.5 billion.
"Investor demand for the new credit card ABS was strong and both of the transactions were upsized," said analysts at Wells Fargo. "The secondary bid list activity in the ABS market picked up during the final week of Q3, but benchmark credit card ABS spread levels held firm. Solid credit fundamentals, a shrinking supply of outstanding bonds, and strong demand for floating rate ABS continued to benefit the card sector."
In September spreads on triple-A rated one-year and three-year floating-rate securities tightened by 1 basis point to +6 bps and +15 bps, respectively from where they priced over the month of August.
Subordinated bonds also fared well in September, with spreads on single-A bonds tightening by 5 bps to + 85 bps and triple-B bonds unchanged at +135 bps, according to Wells Fargo data.